I own a duplex in SW Florida. I owe about $15000 on an equity line. The place is worth at least $100000 ( I was offered an all cash deal to sell it for that amount). I am not interested in selling, but I would like to pull about $80000 out of the place ( pay off the equity line and net $65000) to use for additional properties. I have read conflicting reports on how easy/hard that is to do as well as how much it could cost. I have retirement income and own 3 duplexes and a single family home. I have mortgages on all the other places ranging from 50% to 75% of value. Rental income is covering all expenses plus giving me some cash. What is my best route to getting money out of the place to buy one or two more rental properties with minimal cost to me?
What type of interest rates are you looking to pay on this? I do have some contacts, and I could run it by them. It is more private money than bank loans, if you are interested.
I would like 5% or less. The property has been up and running as a rental since 2009. I am not opposed to private money because at the moment even though I and my husband have excellent credit (FICO around 800) banks like WF say our debt to income ratio is too high.
Contact some local banks and ask for the portfolio lender. They are much more flexible and don't have to adhere to all the conventional loan standards.
@Logan Hassinger , thank you for your info. I will try that as well as expanding my equity line that I already have. I am trying to build my portfolio of rental units so that within the next few years our cash flow is enough to fully retire on. We are currently "retired" but are volunteering outside the country. Our living expenses are covered outside the country by the organization we are volunteering for. We have no living expenses in the states, just expenses for our rentals and some credit card debt.
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